Service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 June 2013
Do a manufacturing company need to pay service tax for calibration(labour charges only)?
09 September 2013
Is there any service provided separately and any bills are raised separately?
24 July 2025
✅ Query:
Does a manufacturing company need to pay service tax for calibration services (labour charges only)?
✅ Answer: YES — Calibration Services are taxable under Service Tax, provided certain conditions are met.
🔍 Let’s break this down:
🔹 1. Nature of Calibration Service:
Calibration refers to testing/measuring instruments to ensure they meet standards.
This falls under Technical Testing and Analysis Services, as per Section 65(105)(zzh) of the Finance Act, 1994 (prior to GST).
🔹 2. Taxability:
If the calibration is not in relation to exempted goods or not part of manufacturing, service tax is applicable.
Labour charges, if billed separately for calibration, are still considered taxable because service tax is on the activity, not on cost structure.
🔹 3. Exemption Scenarios (Not Applicable):
If calibration is done in-house — no service tax.
If services are covered under a job work related to manufacture of excisable goods and fall under mega exemption Notification 25/2012-ST, there may be exemption, but calibration usually does not qualify unless it's integrally part of manufacturing.
🔹 4. Reverse Charge Not Applicable:
Calibration services are not under reverse charge, so the service provider charges service tax, not the manufacturing company.
✅ What to Check:
✔ Whether you received a separate invoice for calibration service?
✔ Is the service provider registered under Service Tax?
✔ Is the service part of a manufacturing process or an independent activity?
If it's a separate calibration job (like ISO-certified labs), yes, service tax is applicable, and the provider must charge and pay it.
🧾 Reference:
Section 65(105)(zzh), Finance Act, 1994
CBEC Education Guide (2012)
Notification No. 25/2012-ST (Mega Exemption)
Does a manufacturing company need to pay service tax for calibration services (labour charges only)?
✅ Answer: YES — Calibration Services are taxable under Service Tax, provided certain conditions are met.
🔍 Let’s break this down:
🔹 1. Nature of Calibration Service:
Calibration refers to testing/measuring instruments to ensure they meet standards.
This falls under Technical Testing and Analysis Services, as per Section 65(105)(zzh) of the Finance Act, 1994 (prior to GST).
🔹 2. Taxability:
If the calibration is not in relation to exempted goods or not part of manufacturing, service tax is applicable.
Labour charges, if billed separately for calibration, are still considered taxable because service tax is on the activity, not on cost structure.
🔹 3. Exemption Scenarios (Not Applicable):
If calibration is done in-house — no service tax.
If services are covered under a job work related to manufacture of excisable goods and fall under mega exemption Notification 25/2012-ST, there may be exemption, but calibration usually does not qualify unless it's integrally part of manufacturing.
🔹 4. Reverse Charge Not Applicable:
Calibration services are not under reverse charge, so the service provider charges service tax, not the manufacturing company.
✅ What to Check:
✔ Whether you received a separate invoice for calibration service?
✔ Is the service provider registered under Service Tax?
✔ Is the service part of a manufacturing process or an independent activity?
If it's a separate calibration job (like ISO-certified labs), yes, service tax is applicable, and the provider must charge and pay it.
🧾 Reference:
Section 65(105)(zzh), Finance Act, 1994
CBEC Education Guide (2012)
Notification No. 25/2012-ST (Mega Exemption)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Transport service POS
- GST Registration Application -Rejected
- GSTR 9C- Table 9
- E INVOICE, E-WAY, INVOICE
- To Whom the Invoice should be Raise to
- INCOME TAX NOTICE QUESTION
- Query on solved queries
- Sale Proceed of Urban Agri. Land received in Advance in FY 24-25 but Registry is made in next year
- Whether to file ITC 03 for downward GST rate revision - Reg.
- PLACE OF SUPPLY FOR COMMISSION AGENT
- Capital gain on sale of resident house by non-resident Indian
- Regarding claiming exemption under section 54ec
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
